SRA publishes new handbook for 'outcomes focused' regime
The Solicitors Regulation Authority has unveiled a draft Handbook that will – subject to consultation – replace the much lengthier Code of Conduct in October 2011.
The publication of the Handbook represents the latest step in the move to so-called Outcomes Focused Regulation, which focuses on the principles and outcomes that should drive the provision of services to clients.
The Handbook will see solicitors and their firms expected to comply with broad principles, rather than detailed rules. The SRA will also seek to focus on the areas of greatest risk, spending less time on low-level matters.
The watchdog said the new regime would allow firms greater flexibility in the way they work. It insisted that the new system would not reduce standards, arguing that “firms which flout the rules will face tough sanctions”.
The principles set out that solicitors and their firms must:
- uphold the rule of law and proper administration of justice
- act with integrity
- not allow their independence to be compromised
- act in the best interests of each client
- provide a proper standard of service to clients
- behave in a way that maintains the trust the public places in them and in the provision of legal services
- comply with their legal and regulatory obligations and deal with their regulators ombudsmen in an open, timely and co-operative manner
- run their businesses and carry out their role in the business effectively and in accordance with proper governance and sound financial and risk management principles
- promote equality and diversity within their businesses and not discriminate unlawfully in connection with the provision of legal services, and
- protect client money and assets.
The Handbook will continue to have detailed rules in areas such as accounts.
SRA chairman Charles Plant said: “A simplified rule-book and freedom to practise innovatively will be good for clients and solicitors' firms alike as it will provide the flexibility needed to do new and better things.
“The SRA's enforcement of the new regime will be targeted and risk-based. Firms which are willing to work with us to deliver good legal services to clients will benefit from greater flexibility. However, firms who are unwilling or unable to engage with us to deliver good outcomes will face tough sanctions.”
The SRA will be holding a series of roadshows on the Handbook. The first consultation period will end on 20 August 2010.